The Core When Strategies are Restricted by Law

Ted Bergstrom, University of California, Santa Barbara

Abstract

The alpha-core is defined to be the set of feasible allocations such that no coalition can do better for its members by selecting alternative strategies given “worst-case” assumptions about the behavior of other players. This paper explores the way that the alpha-core of a game is affected by restrictions on the legally admissible strategies of the players. It also explores the relation between Lindahl equilibrium and alpha-cores with suitable restrictions on strategies.